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Profitability ratios

Business Profitability indexProfit-sharing plan

Profitability ratios
Ratios that focus on the profitability of the firm. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. ...

 


Profitability ratios
Definition 1.
Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment.

Profitability ratios
Definition: Profitability ratios are a type of ratio to assess how profitable the company is.

Profitability Ratios
Financial ratios that illustrate how well management has made use of the company's resources.
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Profitability ratios - Ratios that measure the performance of a firm, where earnings compared to its sales, assets or equity.

Profitability ratios are used to decide whether a company is earning acceptable profits and to determine whether the profits trend is rising or falling. They are also used to compare the relative performance of companies in a given sector.

Profitability ratios typically used by financial analysts to compare a company's profitability over time or compare profitability between companies include Gross Profit Margin, Operating Profit Margin, ROI ratio, Dividend yield, Net profit margin, ...

Profitability Ratios
A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.

Potential investors are interested in dividends and appreciation in market price of stock, so they focus on profitability ratios (e.g., profit margin) and market measures (e.g., price-earnings ratio).

Your stock research should include through due diligence in analyzing companies financials (income statement, balance sheet, cash flow statement, efficiency ratios, and profitability ratios over at least a 10-year period of time
4.

Dividend/Market Value Ratios measure how well a company uses its assets to generate earnings. Profitability Ratios indicate earnings and potential profitability.

Financial Ratios
An overview of financial ratios, including liquidity ratios, asset turnover ratios, financial leverage ratios, profitability ratios, and dividend policy ratios.
NetMBA > Finance
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Alcoa's 2001 Income Statement and Net Profit Margin
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The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.
Profitability ratios ...

See also: Profit margin, Rate of return ratios, Expense, Banks, Profitability index

Business Profitability indexProfit-sharing plan

 
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